How Long $1 Million Will Last You In All 50 States

The conventional wisdom, as delivered by the media and many financial experts, seems to have settled on $1 million. Even AARP recently weighed in on the debate, claiming that everyone needs between $1.0 million and $1.5 million saved before they step away from the office. Their logic is that we can expect to live for 22 years after we call it a career, and around one million bucks is the golden number for comfortable living during that time. But is it really that simple? Is a one-size-fits-all approach to retirement realistic?

My answer is no. Every retiree’s budget and financial needs are different. I’ve written a lot about how you can retire comfortably with just half a million dollars stashed away.

Geography plays a huge role in determining how much you need to retire. America is a big country. And where you choose to live during retirement can make or break almost any budget.

Sure, if you’re independently wealthy and don’t have a care in the world, you can afford live in a sprawling, posh New York apartment. But what about the rest of us? Real estate is the great equalizer when it comes to planning for a comfortable, happy retirement, so it pays to choose your retirement home state carefully.

For instance, the average cost of housing in California is $700,000. Compare that to a state like, say, Ohio, where the average cost of a house is only $190,000, and you see what I mean.

So where should you settle down as you move into the post-career portion of your life? Well, that all depends on your geographic preferences and, of course, your budget.

Clark.com recently reported on research done by Gobankingrates.com. The site released a state-by-state analysis that shows just how far your cool million will stretch in each state in the US for 22 years. According to Gobankingrates.com, researchers used a methodology that took into account average spending of folks age 65 and older once they retire. These expenditures included groceries, utilities, transportation, healthcare, and housing.

Take a look at this list of how long $1 million will last you in all 50 states to see where you may like to call home.

Disclosure: This information is provided to you as a resource for informational purposes only. It is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal. This information is not intended to, and should not, form a primary basis for any investment decision that you may make. The information contained in this piece is not considered investment advice or recommendation or an endorsement of any particular security. Further, the mention of any specific security is solely provided as an example for informational purposes only and should not be construed as a recommendation to buy or sell. Always consult your own legal, tax or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.

This information is provided to you as a resource for informational purposes only and should not be viewed as investment advice or recommendations. This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. This information is not intended to, and should not, form a primary basis for any investment decision that you may make. Always consult your own legal, tax, or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.